Likely Tax Increase Sparks Demands

From today onwards, the working group tax estimate advises on how much tax revenue the federal and state governments can expect. It could be more than previously expected. This gives rise to desire. The German economy has been weakening for years. This is not only a problem for the Federal Government. Recently, however, Federal Minister of Economic Affairs Katherina Reiche was able to announce good news: The bottom has been overcome. “The German economy is growing again.” In the current year, the Federal government now expects growth of 1.3 percent. This is significantly more than predicted in the spring. And in the coming year, the economy will probably grow stronger. Thorsten Rudolph, budgetary spokesman for the SPD in the Bundestag, says that higher tax revenues can also be expected. Christian Haase, chief housekeeper of the CDU and CSU, tells the ARD capital studio, he looks "quite happy" on the upcoming tax estimate. “It could be that next year the tax revenue is higher than planned.” Chancellor wants to reduce the electricity tax for all Possibly more tax revenue - that has also arrived at the Chancellor. Friedrich Merz has an idea for what the money should be spent on. He and his party, the CDU, want to work “that financial leeway in the budget is used so that we relieve the people”. Merz wants to reduce the "electricity tax for all to the European minimum". The CDU/CSU and SPD had announced this in the coalition agreement. Last year, however, the money was missing. The government coalition decided to reduce the electricity tax initially only for a good 600,000 companies from the manufacturing sector and agriculture and forestry. This should change, so now the plan of Chancellor Merz. Around five billion euros a year would cost an electricity tax reduction for everyone. This room for manoeuvre could exist "if growth is consolidated and consolidated," said the Chancellor. Federal Finance Minister Lars Klingbeil is skeptical: Basically, he does not say no, but one should not always only demand. "Then you have to say, how do you want to do it?" I am looking forward to the Union’s funding proposals, says Klingbeil. Does the debt rule make a line through Merz's calculation? So far, Chancellor and Union refer to the likely plus in taxes. The budget experts in the Bundestag also expect a plus. But they also refer to the economic component of the debt brake laid down in the Basic Law: "In a bad economy, the state can take on more debt, in a better economy just less," explains the CDU politician Haase. Because the economy is growing faster, the federal government may plan for the 2027 budget less debt than expected in the spring. This will eat up a large part of the tax revenue at the federal level, Haase predicts. SPD housekeeper Rudolph also expects "no new leeway through the tax estimate". He also says: There is excess revenue, which would be compensated by the fact that the federal government is allowed to borrow less through the debt rule. The bottom line is that householders expect a small plus at best. This should hardly be enough for the electricity tax reduction. In addition: In the coalition there are more, expensive desires with regard to the budget for the coming year. For example, in the case of income tax reform, housing and parental benefits. On Thursday, the result of the tax estimate will be published. Then it is clear whether and if so how much more tax revenue the federal government can expect.